Gold bounces back on election concerns, unexpected return of safe-haven appeal
(USAGOLD – 10/30/2020) – Gold bounced back as we close the week on election concerns and an unexpected return of its safe-haven appeal. It is up $19 at $1889. Silver is up 53¢ at $23.86. (If you are curious why gold’s safe-haven appeal might return to the forefront at this juncture, please see this post and accompanying note published Wednesday.) U.S. Global Investors’ Frank Holmes is among those who see gold as the clear winner no matter the outcome of Tuesday’s election. “Today, we have synchronized money printing to fight COVID-19. There is not one country printing money faster than another,” he says in an interview at Streetwise Reports. “They’re all taking turns at it. If we take a look at the Federal Reserve’s balance sheet and how it’s exploded under this cycle compared to 2008–2009, simple math would suggest in the next three years gold could be $4,000 an ounce.”
Chart of the Day
Chart note: Gold has delivered some impressive returns in 2020 when shown as the percent change from the same month one year ago with several months in the 25% range and one (July 2020) at 36%.